New home closings in the Colorado Springs, CO market increased year-over-year in September, and the market showed signals of strengthening as the percentage boost turned out sharper than August 2015. New home closings saw a boost of 17.3% from the year earlier to 203. This came on the heels of a 2.2% rise year-over-year in August.
A total of 2,198 new homes were sold during the 12 months that ended in September, up from 2,168 for the year that ended in August.
New home closings made up 13.3% of overall housing closings. A year ago, 12.9% of total closings were new home closings. Following a year-over-year increase in August, closings of new and existing homes also gained year-over-year in September.
Pricing and Mortgage Trends
For newly sold homes, the average price moved from $322,742 in September 2014 to $325,014 in September 2015. This followed a move from $321,955 per unit in August 2014 to $320,603 in August 2015.
For newly sold homes, average mortgage size moved from $287,818 in September 2014 to $288,405 in September 2015. In August 2015, average mortgage size on newly sold homes saw a 1.4% boost year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. The share of new home closings belonging to attached units increased from 11.6% of closings in September 2014 to 20.7% of closings in September 2015. Meanwhile, single-family home closings as a percentage of all new home closings sank to 79.3% of closings from 88.4% of closings.
The average unit size of newly sold homes jumped 3.6% year-over-year to 2,817 square feet in September 2015. In August, the average size of new homes sold went from 2,673 square feet a year earlier to 2,748 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 11.6% of existing home closings, below 15.7% a year earlier. The percentage of existing home closings involving foreclosures slid to 5.7% in September from 7.3% a year earlier while REO closings as a percentage of existing home closings dropped to 5.9% from 8.4% a year earlier.